Libman M.A. Negative Integration and Inter-jurisdictional Competition.

    The paper reviews the actual trends in the development of the regional economic integration. To characterize these trends we introduce the term of the «negative integration». Negative integration means the elimination of inter-state barriers for goods and factor flows without harmonization of economic institutions. Some empirical examples show, that the negative integration leads to the competition between jurisdictions for mobile factors of production (first of all, capital). We compare different theoretical approaches to the inter-jurisdictional competition, based on the neoclassical theory, public choice theory, theory of economic order and evolutionary economics.

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